Business of Retail Credentialing TEST PREP (Part 1)

Laci was excited to open her gourmet lemonade shop. As a small business owner, she had to carefully determine what products she would sell, the price of those products, the place or location of her physical store and how she would promote her business. Laci is creating her:

• Marketing Plan

• Business Plan

• Inventory Plan

• Delivery Plan

You're opening a new shoe store in your town. Which of the following would you consider to be your direct competitor?

• Wendy's

• Nike

• TJ Maxx

• Party City

Delivering a positive, memorable experience that leads to customer loyalty is called:

• Quality Customer Service

• Customer Service

• Selling

• Meeting Expectations

Kayla has a home business and sells homemade candles. Which of the following factors does not directly affect how much Kayla will sell her candles for?

• The color of the candles

• The cost of materials

• The price Kayla's competitors sell their candles for

• The profit Kayla wants to make on each sale

Strategies used by retailers that make a product appealing to customers, incentivize them to make a purchase or to generate sales are called:

• Promotions

• Product

• Price

• Place

Your store ran an ad in the local paper stating that all men's shirts will be reduced 30% from Friday through Sunday only. A customer comes in Monday morning with a copy of the as and tells you that he spoke with someone who told him Monday would be okay to redeem the discount. What should you tell the customer?

• Who did you speak with? I think they gave you bad information.

• My manager will have to approve the discount. Excuse me while I go find him for you.

• If they haven't changed it in the system, it might ring up with the 30% discount. If it does, you're in luck.

• I'm sorry, but the shirts were 30% off Friday through Sunday. Today in Monday. You have to paly full price.

Which is the BEST strategy for dealing with negative customer feedback posted on customer surveys or social media?

• Encourage the feedback and think of the comments as free market research.

• Ignore negative comments because unhappy customers often just like to complain.

• Contact the customer with complaints and offer discounts on their next purchases.

• Remove the complaints from social media sites so that other customers will not see them.

The amount of money that comes in to a retail business minus expenses is called:

• Revenue

• Forecasting

• Margin

• Reconciliation

A sales associate has worked for a soft drink company for three years and has run the same delivery route. The company has added a new soft drink. How can the sales associate let his customers know about the new soft drink, and increase both his wholesale sales and the retailer's sales?

• Tell the retailer that the sales associate has added 10 cases to the retailer's account.

• Load the truck with the new soft drink because his boss told him to.

• Give the retailer a free offer and ask for an order on the next trip.

• Wait until the new soft drink has been on the market for two months to see if it becomes popular.

A sales associate is completing a sales transaction for a plasma television. The customer asks about the warranty, but the sales associate is unsure about how to answer the customer's question. Which of the following should the sales associate do?

• Ask another sales associate to help the customer.

• Explain that the customer can return the television within 90 days of the purchase date.

• Refer the customer to the manufacturer's toll free number.

• Locate a copy of the warranty document and share it with the customer.